Natural Gas Price Forecast March 21, 2018, Technical Analysis

The natural gas markets initially went sideways during the day on Tuesday, but then rallied towards the $2.69 level. There is a significant amount of resistance at the $2.70 level, and I think break above there would be a bullish sign, perhaps sending the market towards the $2.75 handle after that. There is plenty of resistance going higher, so I think it’s only a matter of time before the sellers come back on signs of exhaustion. That’s exactly how I wish to trade this market, selling rallies as they appear.

NATGAS Video 21.03.18

Alternately, if we break down below the $2.65 level, we probably reach towards the $2.60 level, followed by the $2.50 level. I believe that it is only a matter of time before the sellers get involved as there is far too much in the way of supply in this market to continue to find buyers, although we will get these short-term burst as we have seen on Tuesday. I think that buying this market is going to be very difficult, as the market could turn around at any moment. A headline crossing the wires will probably be your biggest concern.

I think the $2.50 level will continue to be very important, so if we were to break down below there it would be the “bottom falling out” of the market. In general, I think that we get a short-term rally, but it should give you an opportunity to sell at higher levels, which has worked for quite some time.